Asked by arianna denn-thiele on Apr 24, 2024
The management of Finitos, a stationery manufacturer, wanted to cut down its fixed costs to increase the profits of the company. As a result, it drastically reduced its HR staffs and hired an external agency to manage basic HR functions such as payroll and benefits. To achieve Finitos's objective, the management of the company most likely employed _____.
A) crowdsourcing
B) outsourcing
C) foreign direct investment
D) homeshoring
Outsourcing
The practice of hiring third parties to execute services or produce goods that were traditionally performed in-house.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.
- Understand the effects of outsourcing on the framework and activities within an organization.
Learning Objectives
- Understand the effects of outsourcing on the framework and activities within an organization.
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